Five analyst stock picks this week
CDSL: Among trading companies, HDFC Securities analysts are bullish on CDSL, with a target price of Rs. 1,075. "CDSL continues to be the greatest beneficiary of the rise in discount brokers," analysts Amit Chandra and Mohit Motwani write. "It is expected to post another strong quarter (+4.9 QoQ), led by transaction and annual issuer revenue. Transaction revenue will grow on a high base, supported by higher trade volume YoY."
Avanti Feeds: Geojit is a buy on this shrimp feed company, with a target price of Rs. 760, an upside of 18%+. "The price hike taken in recent months will support realisation and we are expecting revenue CAGR of 18% over FY21-23E," analyst Vincent Andrews writes, "Demand outlook is improving given the re-opening of hotels & malls in export markets along with better export and farm gate prices, and favourable shrimp culture conditions."
TCS: Healthy deal wins are a core positive for this IT giant, ICICI Securities analyst Devang Bhatt writes. ICICISec's target price of Rs. 3,800 gives it an upside of 18%+. "TCS is a key beneficiary of multi-year growth (15-20%) in digital technologies. The increase in outsourcing in Europe, vendor consolidation and deal pipeline is leading to revenue CAGR of 13% over FY21-23E," he notes. "With industry leading margins, we expect margins to improve 142 bps over FY21-23E."
Indian Hotels: Motilal Oswal is a buy on this hotels chain, saying that "cost savings are here to stay." Giving an upside of 21%+ on a target price of Rs. 180, analysts Sumant Kumar, Darshit Shah and Yusuf Inamdar write, "While FY21 earnings are weak, we expect a sharp recovery in FY22E/FY23E on: a) a low base, b) improvement in ARRs once things normalize, c) improved occupancies, d) positivity in cost rationalization efforts in FY21, e) an increase in F&B income as banqueting/conferences resume, and f) higher income from management contracts.
Ujjivan Small Finance Bank: Axis Direct analysts are a buy on this SFB with a target price of Rs. 37, an upside of 21%+. "We believe that the disbursements have picked up in Jun’21 as geographies witnessed unlocking. Taking a cue from the performance of peers, we expect the collections to have improved in Jun’21," analyst Dnyanada Vaidya writes. "Asset quality stress build-up due to COVID 2.0, and credit cost outlook for FY22E remain key monitorables#CDSL #AVANTIFEED #TCS #UJJIVANSFB #INDHOTEL